04 Jun 2019
(Stocks Discussion) SGX: Riverstone (SGX: AP4)?
Discuss anything about Riverstone SGX: AP4 share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell Riverstone SGX: AP4 on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment in Riverstone SGX: AP4
TL;DR: Riverstone is currently trading at its 52-week low. Revenue in 1Q2019 saw a 14.6% increase YoY.
Riverstone is a Malaysia-based company that specialises in manufacturing cleanroom and healthcare gloves. Incorporated in 1991, they have since received significant awards and certifications.
The share price of Riverstone is trading at $0.97 (as of 17 May 2019). The 52-week L/H is at $0.96/$1.24, i.e Riverstone is trading near its 52-week low.
*note that figures are in RM
Dividend payout ratio of 40%, with a dividend per share of 7.0 sen per share.
P/E ratio sits at 16.6, which is pretty alright, not a great bargain but it could have been undermined by the lower profits. Their cash will be able to cover all their short and long term debt.
Revenue in the first quarter grew, but the cost of goods increased thus leading to an overall decrease in net profits of 2.8%. Now they are undergoing phase six of their capacity expansion plans which they expect to add 1.4 billion pieces to amass a total production capacity of 10.4 billion pieces of gloves per annum by end FY2019.
In the first quarter of 2019, revenue increased but profits decreased. A decrease in profits doesn’t mean that we shouldn’t consider this stock. Although they are faced with macroeconomic risks, I feel that the fundamentals of this company are pretty strong, and they are undergoing expansion too which means higher revenue.
I noticed Tracy Lim's post dated 4th June 2019 when the price was S$0.97 trading at 52 week low. Since then it has gone up to a high of S$2.01 on 31st August 2020.
Today, it hit a 52 week low of S$0.90.
Compared to Tracy's report in 2019, as of today.
Current Share Price: S$0.92
Market Cap: S$1.36B
Earnings per share: S$0.277
PE (Adj): 3.31x
Dividend Yield: 9.32%
Seems like a 2019 again with the price trading close to 52 week low today but with improved fundamentals at a lower price than in 2019.
What would you do? Would you buy? Or not?
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